Gold Edges Higher to Near Record Before Long-Awaited Fed Pivot
Gold edged higher after slipping from a record high on Monday ahead of the Federal Reserve's long-awaited pivot to lower borrowing costs.
Bullion traded near $2,570 an ounce, after falling 0.5% in the previous session following a report that showed and increase in US retail sales. The data did little to resolve the debate about whether the Fed would opt for a quarter or half-point cut later on Wednesday. Lower rates tend to benefit gold, which doesn't pay interest.
The precious metal would face a minor, near-term setback if the Fed cuts by just 25 basis points, Goldman Sachs Group Inc. said in a note. But it's still likely to rise to $2,700 an ounce by early next year, it said.
Read More: Goldman Says Gold May Dip If Fed Opts for Quarter-Point Cut
Gold has rallied by almost a quarter this year as the Fed moved closer to pivoting to monetary easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance, while interest from retail investors has also picked up.
Spot gold rose 0.2% to $2,574.28 an ounce as of 7:53 a.m. in Singapore, down from Monday's all-time high of $2,589.70. The Bloomberg Dollar Spot Index slipped 0.1%. Silver edged up, platinum dipped, and palladium was little changed.
Source : Bloomberg
